#1All Together Now! How Collaboration Works in Arkansas Katherine Johnson, Johnson Consulting Group, Frederick, MD Matt Klucher, Arkansas Public Service Commission, Little Rock, AR September 10, 2014 1 www.johnsonconsults.com Johnson CONSULTING GROUP#2Presentation Overview • Quick History of Energy Efficiency • Purpose of the PWC Roles and Responsibilities of the PWC Members Mechanics of the Decision-Making Process. PWC Accomplishments Key Conclusions/Recommendations Johnson 2 www.johnsonconsults.com CONSULTING GROUP#33 • Where is it? Arkansas? Southern United States Fort Smith Magazine Mt. 2,753 ft 839 m Arkansas Arkansas River Hot Springs Nat'l Park 2 Conway Hot Springs Little Rock www.johnsonconsults.com Fayetteville Juachita River Red River Texarkana Texas El Dorado EnchantedLearning.com Louisiana N WE Missouri Jonesboro White River St. Francis River Mississippi Key State Pine Bluff * Capital City Mississippi 100 miles State boundary Mountains. Nati Park Water 53,000 sq. miles/ 137,270 sq km. 3 million people A little larger than Greece Johnson CONSULTING GROUP Tennessee Missouri#44 Arkansas is Known For Walmart The Clintons www.johnsonconsults.com The world corporation and biggest private employer in the world- 2 million employees; world's largest retailer And Energy Efficiency! Johnson CONSULTING GROUP#5Quick History of Energy Efficiency in Arkansas 1977 2006 2007 1977 Arkansas Attorney General Bill Clinton and the General Assembly passed the Energy Conservation Endorsement Act. 2006 APSC initiates work to establish a regulatory framework and rules for energy efficiency programs. 2007 Commission approved and adopted "Rules for Conservation and Energy Efficiency Programs" which directed the IOUS to design and implement energy efficiency programs in Arkansas which were launched later that year. 50 www.johnsonconsults.com Johnson CONSULTING GROUP#6Quick History of Energy Efficiency in Arkansas 2010 2011... 2010 Adopted an energy efficiency resource standard (EERS), guidelines for efficiency program cost recovery and a shareholder performance incentive, and new guidelines for utility resource planning. 2011 Established the need for EM&V, and the EM&V Advisor- later the Independent Evaluation Monitor (IEM). 2011 To the present time, conduct annual EM&V activities, update the TRM, and explore new and emerging energy efficiency issues. 6 www.johnsonconsults.com Johnson CONSULTING GROUP#7. ENGAGE Collaboration in Arkansas Arkansas has made tremendous gains in just a few years. Now viewed as a major leader in energy efficiency in the Southeast COLLABORATE COOPERATIO MANAGEMENT BUSINESS ABORATI NO IEIIEC GREN NGH HER These significant accomplishments are due to the hard work of the Parties Working Collaborative (PWC) established by the Arkansas Public Service Commission in 2006. The PWC members include the seven investor-owned gas and electric utilities, the Evaluation, Measurement & Verification (EM&V) contractors, program implementers, and intervenor groups. 7 www.johnsonconsults.com Johnson CONSULTING GROUP#8Roles & Responsibilities Parties to the Docket: EAI SWEPCO OG&E Empire CenterPoint SourceGas AOG AG General Staff Intervenors: AAEA ACAAA AEEC/ACG 8 Audubon Sierra Club Wal-Mart Parties to the Docket and Other Interested Parties Weatherization Collaborative C&I/National Accounts Interested Members Interested Members Interested Interested Intervenors Intervenors Interested Other Parties www.johnsonconsults.com Other Participants: Arkansas Energy Office IEM Program Implementers EM&V Contractors Subject Matter Experts Other Interested Parties Interested Other Parties Johnson CONSULTING GROUP#9Roles and Responsibilities of the PWC Members The PWC is composed of representatives from a variety of organizations including state organizations, electric and gas utilities, energy advocacy groups, and private consulting firms. General Staff: State employees who work for the APSC. Parties to Applicable EE Docket: Individuals from a variety of private and public entities including utility staff, employees from state organizations and advocacy groups. Meeting Facilitator: Ensures that proposed activities of the PWC conform to industry "best practices" to the greatest extent practicable; provides guidance and insight regarding critical issues facing the PWC; 9 www.johnsonconsults.com Johnson CONSULTING GROUP#10Roles and Responsibilities of the PWC Members Program Administrators/Technical Experts/Advisors to the Parties: Technical experts employed directly by any PWC members; technical experts may provide expertise and input as appropriate to inform the PWC; provide timely feedback on materials; participate in formal discussions. Individuals include representatives from energy consulting and engineering firms. EM&V Contractors (Technical Experts/ Advisors to the Parties): Consulting firm staff members hired by the electric and gas utilities to perform program evaluation. 10 Other Non-Party PWC Participants: May include representatives from a variety of other interested organizations, including technical colleges, and staff from Arkansas Energy Organization (AEO). These individuals attend PWC meetings, participate in meetings, and provide information to the Parties and PWC meeting participants (PWC Procedural Guidelines 2014, p. 5) www.johnsonconsults.com Johnson CONSULTING GROUP#11Expanded PWC Role In 2013, the PWC expanded its role from EM&V issues to also provide advice on energy efficiency policies including non-energy benefits and carbon pricing. Created the Weatherization Collaborative and C&I/National Accounts Collaborative to develop new program designs and recommended strategies to create a unified statewide approach. 11 www.johnsonconsults.com Johnson CONSULTING GROUP#12Decision-Making Process Mechanics • The PWC developed its decision-making process over time. • The PWC strives to arrive at consensus decisions • on issues in a collaborative manner. - However, consensus is not required. The procedural guidelines have a well-defined process in which minority parties may petition the Commission directly to appeal any decision agreed upon by the majority of the PWC members. 12 12 www.johnsonconsults.com Johnson CONSULTING GROUP#13● PWC Accomplishments Established EM&V Protocols as part of the TRM (in 2011 and updated annually). Provided annual EM&V Reports on current programs which are summarized by the IEM. - Address new topics including: - - Developing a unified statewide program design for a weatherization program. - Working on a similar approach for C&I. - Developing carbon cost assumptions. - Quantifying Non-Energy Benefits (NEBs). - Preparing white papers/analyses on other topics such as industry standards and best practices. 13 www.johnsonconsults.com Johnson CONSULTING GROUP#1414 TRM Annual Update Process Step 1 Process Flow Identify Need for Addition or Modification to the TRM Primary Responsible Party Program Administrator/s, EM&V Contractors, Utilities, Other Parties to the Docket/ Interveners, TRM Manager and/or IEM 2 3 5 6 ↓ IEM will prioritize, coordinate and oversee the requested changes to the TRM Develop draft of New Measure Characterization Circulate Draft to Other Parties/Stakeholders Provide Feedback on Draft Revise Draft Based on Feedback and Recirculate IEM TRM Manager TRM Manager All EM&V PWC Stakeholders TRM Manager/IEM Consensus 7 Proposal ↓ 8 Technical Forum 9 10 10 Disagreement All EM&V PWC Stakeholders Staff will file recommended changes to the TRM for Commission Decision/Approval Decision/Approval General Staff Commission Update TRM TRM Manager/IEM Johnson www.johnsonconsults.com CONSULTING GROUP#15Lessons Learned from Arkansas Collaboration is sometimes messy- but very worthwhile. • You can disagree without being disagreeable. • Consensus decision-making can work if minority opinions are allowed. • Rome was not built in a day; neither was the Arkansas PWC. Lessons Learned 15 www.johnsonconsults.com Johnson CONSULTING GROUP#16Questions Johnson 16 www.johnsonconsults.com CONSULTING GROUP#17For More Information Dr. Katherine Johnson, President Phone: 301 461 4865 Email: [email protected] Website: www.johnsonconsults.com Johnson 17 www.johnsonconsults.com CONSULTING GROUP